Correlation Between High Liner and Leveljump Healthcare
Can any of the company-specific risk be diversified away by investing in both High Liner and Leveljump Healthcare at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining High Liner and Leveljump Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between High Liner Foods and Leveljump Healthcare Corp, you can compare the effects of market volatilities on High Liner and Leveljump Healthcare and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in High Liner with a short position of Leveljump Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Liner and Leveljump Healthcare.
Diversification Opportunities for High Liner and Leveljump Healthcare
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between High and Leveljump is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding High Liner Foods and Leveljump Healthcare Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leveljump Healthcare Corp and High Liner is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on High Liner Foods are associated (or correlated) with Leveljump Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leveljump Healthcare Corp has no effect on the direction of High Liner i.e., High Liner and Leveljump Healthcare go up and down completely randomly.
Pair Corralation between High Liner and Leveljump Healthcare
Assuming the 90 days trading horizon High Liner Foods is expected to generate 0.31 times more return on investment than Leveljump Healthcare. However, High Liner Foods is 3.21 times less risky than Leveljump Healthcare. It trades about 0.05 of its potential returns per unit of risk. Leveljump Healthcare Corp is currently generating about 0.01 per unit of risk. If you would invest 1,240 in High Liner Foods on January 15, 2025 and sell it today you would earn a total of 434.00 from holding High Liner Foods or generate 35.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
High Liner Foods vs. Leveljump Healthcare Corp
Performance |
| Timeline |
| High Liner Foods |
| Leveljump Healthcare Corp |
High Liner and Leveljump Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High Liner and Leveljump Healthcare
The main advantage of trading using opposite High Liner and Leveljump Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High Liner position performs unexpectedly, Leveljump Healthcare can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Leveljump Healthcare will offset losses from the drop in Leveljump Healthcare's long position.| High Liner vs. Metro Inc | High Liner vs. George Weston Limited | High Liner vs. Gildan Activewear | High Liner vs. Loblaw Companies Limited |
| Leveljump Healthcare vs. Firan Technology Group | Leveljump Healthcare vs. Canlan Ice Sports | Leveljump Healthcare vs. Mayfair Acquisition | Leveljump Healthcare vs. G6 Materials Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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